Influence of Supplier Management on Performance of Retail Chain Stores in Nairobi City County, Kenya

Abstract

The retail industry, contributes up to 30% of the employment in formal and informal establishments in Kenya. However, Kenya’s retail industry has in the recent past experienced fluctuations in performance. Regardless, scholars indicate that better procurement management practices can help improve firm performance. This study therefore sought to establish the influence of supplier management on performance of large retail enterprises in Nairobi City County, Kenya. This study was informed by the Resource Based theory and Transaction Cost Economics theory. A descriptive research design was used in the study. The study was confined to the retail chain stores in Nairobi County, Kenya. There are 125 licensed retail chain stores spread across Nairobi City County. The target unit of observation was the procurement and logistics heads of the supermarkets as the unit of observation. A census survey was conducted on the 125 licensed retail chain stores spread across Nairobi City County. A questionnaire was used to collect primary data which was analyzed using Statistical Package for Social Sciences version 22. Descriptive and inferential statistics were used. The findings of this study indicated that supplier management positively and significantly influences performance of retail chain stores in Nairobi City County, Kenya.

Key Words: Supplier Management, Retail Chains, Performance